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The Village of Walden has placed its manager, John Revella, on paid administrative leave following a federal indictment. Revella, who also serves as an Orange County legislator, faces charges of failing to report over $1 million in income from his private law practice. The indictment, filed in the U.S. District Court for the Southern District of New York, accuses Revella of filing false tax returns from 2018 to 2022. Prosecutors allege that Revella deposited client payments into an Interest on Lawyer Account (IOLA) and withdrew funds by writing checks to himself, resulting in significant unreported income.
The situation is further complicated by an ongoing investigation by the Orange County District Attorney’s Office into the village's housing rehabilitation program, which Revella oversaw. Subpoenas have been issued as part of the probe, focusing on potential misuse of low-interest loans intended for housing improvements. Allegations suggest some loans may have been used for ineligible properties, possibly as real estate investments.
Mayor Becky Pearson confirmed that Revella was placed on leave on April 1. It remains unclear how long the leave will last or who is currently handling his duties. Revella's attorney, Mark Lesko, argues that the allegations are inaccurate and views the matter as a civil issue rather than a criminal one. Lesko stated, "We look forward to our day in court."
As the investigation unfolds, the Orange County District Attorney’s Office has not commented on the housing program probe. If improprieties are found, criminal charges could be pursued. Revella has not responded to requests for comment.